US stocks advance

The Dow Jones industrials set a new high today as stocks extended their gains for a second day after Federal Reserve Chairman Ben Bernanke told a Senate panel the economy should grow modestly this year despite a slowdown in housing and that he expects inflation will continue to ease.

Wall Street, which had faced some concern about whether Bernanke might sound a hawkish note on inflation, welcomed his benign remarks. While investors might debate whether the Fed will lower short-term interest rates later this year, Wall Street appeared more confident the central bank was at least likely to leave rates unchanged, as it has in recent meetings.